After testing the program in several states, CVS has decided to officially go nationwide with its delivery program, called CarePass that looks an awful lot like Amazon Prime
However, at only $48 a year, the tab for CarePass will come in at less than half the price users pay for Amazon Prime, a comparatively whopping $119. Not only will this service provide free 1–2 day delivery of drugstore products and prescriptions to its members, other perks include discounts on CVS brand products, access to a pharmacy hotline, and a $10 coupon in your mailbox every month.
This expansion comes at a time when so many convenience stores are struggling to defeat the retail giant Amazon which is, let’s face it, more convenient. Not only does Amazon dominate online retail shopping with their free two-day shipping, availability of reasonable prices and range of products, but it has also now begun to compete on the prescription front too, with its acquisition of PillPack, an online pharmacy.
CVS President Kevin Hourican hopes to lure consumers to stay with CVS by targeting millennials, the ones who could get away if they don’t act fast, stating that he wants to make it easier for them to do business with CVS, acknowledging how “time-starved” they are. He says of the CarePass initiative, “we are a convenient shopping location because of our footprint, and this expands our convenience one step further.”
The program has proven to be a success in the three cities it was piloted in, Boston, Philadelphia, and Tampa, boasting a 15–20% increase in spending among members. Though time will tell if it will enjoy widespread success, it seems like a great initiative to keep up with an evolving consumer base and adapt to their most salient needs. Now we’ll just have to see if people are impressed enough to actually cancel their Amazon Prime for it.
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Hannah Michelle Lambert is the Digital Marketer at Worthix, as well as the host of the monthly CX News Recap segment. She is a graduate of the University of Michigan.
